Markets Rebound Strongly: Sensex and Nifty Surge Over 1%

On Wednesday, March 5, Indian equity markets staged a strong recovery, erasing previous losses and closing in the green. The rally was supported by gains in IT, banking, and auto sectors, along with positive global sentiment and improving economic indicators.

The S&P BSE Sensex jumped 740.30 points (1.01%) to close at 73,730.23, while the NSE Nifty50 surged 254.65 points (1.15%) to end at 22,337.30. This marked the biggest single-day gain for the indices in a month. The broader market outperformed, soaring over 2.5%, reflecting strong investor confidence.

Key Drivers of the Market Rally

1. Strong Service Sector Data: India’s services sector picked up momentum in February, with the Services PMI rising to 59 from 56.5, indicating expansion and boosting investor sentiment.
2. Easing Trade Tensions: Reports suggested that the US might ease some tariffs on Canada and Mexico, helping calm global markets.
3. Broader Market Participation: Out of 2,967 stocks traded on NSE, 2,461 advanced, showcasing strong market breadth.
4. Global Cues: Asian markets remained positive, with Hong Kong’s Hang Seng rising 2.6%, and Shanghai Composite gaining 0.6%, supporting Indian equities.

Sectoral Performance

All sectors closed in positive territory, with notable gains in:

• Nifty IT & Telecom: +4.43%
• Nifty Metal: +4.04%
• Nifty Media: +3.14%
• Nifty PSU Bank: +3%
• Nifty Auto: +2.6%

Top Gainers and Losers

Among the Nifty50 stocks, 46 stocks gained, while only 4 declined. The top gainers included:

• Adani Ports (+5.15%)
• Tata Steel (+4.9%)
• Adani Enterprises (+4.8%)
• Power Grid (+4.5%)
• M&M (+4.13%)

On the downside, the biggest losers were:

• Bajaj Finance (-3.37%)
• IndusInd Bank (-2.9%)
• HDFC Bank (-2.5%)
• Shriram Finance (-2.3%)

Stocks in Focus

• Adani Ports: Shares surged 5.15% after reporting a 3% YoY rise in cargo volume for February.
• M&M: UBS upgraded the stock, citing strong SUV segment growth, leading to a 4.13% gain.
• Avanti Feeds: Hit a 52-week high of ₹812, jumping 9.7% after Thai Union Group divested a 4.4% stake worth ₹435 crore.

Global Market Overview

While Indian markets remained strong, US markets struggled on Tuesday. The S&P 500 dropped 1.2% to 5,778.15, and the Dow Jones fell 1.6% amid concerns over tariffs imposed on Canada, Mexico, and China.

Meanwhile, Brent crude declined 0.34% to $70.80 per barrel, easing inflationary concerns.

Overall, the Indian markets remain resilient, backed by strong domestic growth and improving investor sentiment.